France: Unemployment Benefit Duration Reduced for Mutual Termination Agreements from September 2026

Employees in France whose employment ends through an individual mutual termination agreement (rupture conventionnelle) on or after 1 September 2026 will be entitled to shorter periods of unemployment benefits. The change applies only to mutual termination agreements and does not affect employees whose employment ends through dismissal.

New Benefit Periods

The reduction in benefit duration varies according to the employee’s age at the end of their employment.

Different benefit periods continue to apply in certain French overseas territories.

Timing Is Critical

The key date is the effective termination date of the employment contract, not the date on which the mutual termination agreement (Cerfa form) is signed.

Any mutual termination agreement that takes effect on or after 1 September 2026 will be subject to the new, shorter unemployment benefit periods.

For employees who are not protected employees, agreements signed no later than 23 July 2026 may still allow the employment contract to end before 1 September 2026, enabling the employee to remain eligible for the current, longer benefit periods.

Possible Extension for Older Employees

Employees who are 55 years of age or older when their employment ends may apply for an extension of their unemployment benefits to restore the standard benefit duration.

However, any extension is subject to approval by France Travail. Applications will be assessed individually after the first year of unemployment benefits, taking into account the claimant’s efforts to return to work, including active job searching, participation in training, career transition initiatives, or business creation projects.

What Employers Should Consider

Employers planning mutual termination agreements should be aware that the effective termination date may have a significant impact on an employee’s unemployment benefit entitlement. As a result, both employers and employees may wish to consider the timing of any proposed agreement carefully before finalising the termination date.

The changes also highlight the importance of ensuring employees understand how a mutual termination agreement may affect their financial position following the end of their employment.

Aramis, France, a Transatlantic Law International Affiliated Firm.  

For further information or for any assistance please contact france@transatlanticlaw.com

Disclaimer: Transatlantic Law International Limited is a UK registered limited liability company providing international business and legal solutions through its own resources and the expertise of over 105 affiliated independent law firms in over 95 countries worldwide. This article is for background information only and provided in the context of the applicable law when published and does not constitute legal advice and cannot be relied on as such for any matter. Legal advice may be provided subject to the retention of Transatlantic Law International Limited’s services and its governing terms and conditions of service. Transatlantic Law International Limited, based at 84 Brook Street, London W1K 5EH, United Kingdom, is registered with Companies House, Reg Nr. 361484, with its registered address at 83 Cambridge Street, London SW1V 4PS, United Kingdom.